As the stock market approaches its historical highs, investors find themselves more hesitant to invest in high-growth stocks amid various macroeconomic challenges. Factors such as persistent inflation, trade disputes, and geopolitical tensions are leaning some investors towards more cautious, conservative strategies. Nevertheless, for those willing to hold onto their investments for several years, certain growth stocks with long-term potential could be worth considering.
Two such promising players in the rapidly expanding artificial intelligence (AI) sector are Figma and CoreWeave. Both companies are experiencing significant growth and are currently trading at attractive valuations, positioning them as potentially strong investments moving forward.
Figma specializes in cloud-based user interface (UI) and user experience (UX) design tools. The company has seen impressive growth, with a 45% year-over-year increase in customers generating at least $10,000 in annual recurring revenue, bringing the total to over 10,500. Additionally, its net dollar retention rate has risen to 134%, suggesting that existing customers are increasing their spending. Figma’s revenue also surged by 48%, reaching $749 million.
A key advantage of Figma’s offerings is their cloud-based nature, allowing tools to operate directly within a web browser without the need for local installations. This approach provides a more flexible and scalable option compared to traditional software from competitors like Adobe. Collaborative features allow multiple users to edit projects simultaneously, enhancing productivity for teams of varying sizes, from the individual to large enterprises.
Although a proposed acquisition by Adobe for $20 billion was halted due to regulatory issues, Figma’s current market capitalization stands at $19 billion. While its valuation at 15 times projected 2026 sales might appear steep, its strong growth trajectory could justify the premium. Analysts predict a compound annual growth rate (CAGR) of 27% for Figma’s revenue from 2024 to 2027, potentially reaching $1.53 billion. This growth is expected to be driven by new AI-powered tools and international expansion.
CoreWeave, initially an Ethereum mining company, pivoted its focus following the 2018 crypto downturn. Today, it operates 33 data centers across the U.S. and Europe, using Nvidia’s advanced data center GPUs to provide high-speed processing for machine learning and AI tasks. This strategic shift allows large AI companies to leverage CoreWeave’s capabilities without investing heavily in their own infrastructure.
In 2024 alone, CoreWeave’s revenue soared by 738% to nearly $1.92 billion. Projections suggest this robust growth will continue, with expectations of a CAGR of 116% from 2024 to 2027, potentially bringing in $19.2 billion by the end of this period, alongside a transition to profitability. CoreWeave’s infrastructure agreements with major players like Microsoft and OpenAI are likely to support its ambitious expansion plans.
With a market cap of $38 billion, CoreWeave’s stock appears quite reasonable, trading at just three times its anticipated 2026 sales. Despite some near-term concerns regarding rising debt and dilution from ongoing expansions, the company’s potential for growth could lead to much higher valuations in the future.
Both Figma and CoreWeave offer compelling cases for long-term investment, capitalizing on the growth opportunities within the burgeoning AI market. Investors with the resilience to navigate short-term market fluctuations may find these stocks well worth the consideration as they look towards 2026 and beyond.
